February 20,2026
RED FM News Desk
Most Canadian exports will remain exempt from U.S. President Donald Trump’s newly announced 10 per cent global tariff.
Goods that comply with the Canada-U.S.-Mexico Agreement, known as Canada-United States-Mexico Agreement (CUSMA), will not be subject to the levy. The new duty also will not be stacked on top of existing sector-specific tariffs on steel, aluminum and automobiles.
According to The Canadian Press report,Trump signed an executive order to implement the worldwide tariff after the Supreme Court blocked his previous approach. The court ruled he could not rely on the International Emergency Economic Powers Act to impose broad tariffs.
Instead, Trump invoked Section 122 of the Trade Act of 1974, which allows temporary tariffs for up to 15 days unless extended by Congress.
British Columbia Premier David Eby says a recent U.S. Supreme Court ruling invalidating broad global tariffs may pave the way to contest other levies impacting B.C.’s softwood lumber industry.
Eby noted that while any formal legal challenge would primarily fall under federal authority, the province could explore taking independent action if necessary.
He said he welcomes the Supreme Court decision striking down wide-ranging tariffs imposed by U.S. President Donald Trump, calling it an important development. Although Trump has since added a further 10 per cent tariff on top of existing measures, Eby said the ruling sends a meaningful message.
The United States applied a 10 per cent tariff on Canadian softwood lumber in October 2025 citing national security concerns, pushing total combined duties on the product to 45 per cent.
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